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would you help me to solve this excercise, please: Consider a five-year stock swap that pays every 6 months in which you receive LIBOR and
would you help me to solve this excercise, please:
Consider a five-year stock swap that pays every 6 months in which you receive LIBOR and pays the return on the stock index. The current period is 182 days, and the swap has run for 91 days. The six-month LIBOR rate at the last minute was 7% and the stock index was at 1050. The current value of the stock index is 1060. The 3-month LIBOR is selling at 6%. What is swap value per dollar?
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